Summary:
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Local Conservative Party members oppose Theresa May’s Brexit deal
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DAX (DE30 on xStation) bulls manage to defend the 10400 pts handle
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Airbus (AIR.DE) said to fall slightly short of aircraft delivery goal for 2018
European equities played down declines seen yesterday on Wall Street and joined Chinese stocks in an upward move on Friday. Vast majority of the blue chips indices from the Old Continent opened higher today and the biggest gains were seen on the German and Russian stock markets in the first minutes of the session. Miners led advance being followed by refiners.
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DE30 once again tested the swing level at 10400 pts yesterday and once again failed to break below. Note how 33-period moving average on the H4 interval (green line on the chart above) was limiting DE30 upward moved during the past month. Having said that, investors should stay on guard once the price will be heading towards this hurdle again. Source: xStation5
YouGov, the UK research and data analytics company, conducted a survey among Conservative Party members to see whether they support it or not. It should be noted that the survey was conducted mostly among local Conservatives that are not members of parliament. According to the study as much as 59% of the party members oppose the deal PM May presented to the parliament while just 38% favoured it. Over a half of respondents said that they believe the proposed deal does not respect result of the 2016 referendum. Asked about opinion on the Irish backstop just 11% said it makes sense to them while 40% said they would oppose any kind of deal including that kind of clause. At the same time 76% of respondents claimed that warnings saying that the no-deal Brexit could cause food or medicine shortages were exaggerated. The report comes amid speculation that Conservative MPs could have been pressured by local party members during the Christmas break to back May’s deal. It turns out that local Conservatives oppose current Brexit deal even more than the parliamentary group.
Major European stock market indices after the first hour of trade:
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DAX (DE30): +1.10%
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FTSE 100 (UK100): +0.72%
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CAC40 (FRA40): +0.91%
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IBEX (SPA35): +0.90%
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FTSE MIB (ITA40): +1.46%
DAX members after 45 minutes of Friday's session. Source: Bloomberg
Company News
Mercedes-Benz, a division of the German Daimler (DAI.DE), topped other luxury carmakers in terms of the US sales for the third consecutive year. The company delivered almost 316k cars in 2018, being close to 5k units ahead of the second BMW (BMW.DE). Toyota’s Lexus was the third best selling luxury car brand in the United States in the past year while Volkswagen’s (VOW.DE) Audi was the fourth. However, it should be noted that out of all four brands BMW was the only one that managed to increase sales compared to 2017.
Airbus (AIR.DE), the European aircraft manufacturer. Is said to have fallen slightly short of its reduced delivery goal for 2018. According to Bloomberg report, deliveries in 2018 surpassed 790 but fell short of 800 (goal). Among reasons for the failure to meet the goal one can name issues early-year engine issues as well as slow turbine production. The information was provided by anonymous insider and was not confirmed yet by the company. Airbus is scheduled to release official figures on 11 January.
